Buying your first home

Buying your first property can be both exciting and daunting, but there are important decisions to make and criteria to consider before you take your first steps onto the property ladder. I will assist you throughout the home-buying process to ensure you receive the right guidance and advice.

It is important to take advice on your mortgage options before getting serious about your property search.  My aim is to put you in the best position to proceed once you have found a property.  At our first meeting, we will review your income and outgoings to determine a sensible budget for your new purchase. It’s a good idea to have the following documents available for this meeting:

• four months Payslips
• audited accounts/SA302 documents if self employed 
• four months bank statements
• proof of deposit
• proof of address
• proof of identity e.g. driving licence or passport
• your budget planner
• details of your existing loan or credit card commitments

Once we have discussed your current finances, I will be able to tell you how much you may be able to borrow, and what your monthly costs would be and guide you through the next steps in the house-buying process.  I'll also help you understand all costs associated with purchasing a property and when you need to pay them.  This could include;

• your deposit
• the broker fee
• lender charges
• protection costs for your mortgage, yourself and your property
• solicitors fees
• surveys fees
• stamp duty/government taxes

Your solicitor carries out the conveyancing*, which is the legal process of handing over a property from one person to another, and instructing the right professionals to assist you in the purchase of your home is essential.  I can put you in touch with a solicitor, which lets me have greater oversight of the purchasing process.  The solicitors also have a duty to protect your interests so they will investigate the legal aspects of the property.  It is highly beneficial to choose a solicitor in advance in order to budget precisely what you are going to spend from the outset.

* Conveyancing is not regulated by the Financial Conduct Authority.

Once we have discussed your options,  I may be able to apply for a decision in principle before making a full mortgage application.  The mortgage lender will carry out a credit search and, based on the details you have provided, offer a decision in principle.  This will be subject to a full application to the lender with supporting documents.

Once you have found a property, the lender will also want to carry out a survey of the property to confirm that it is suitable security for the mortgage.  As your Mortgage Adviser, I will liaise with the lender at every stage of the process.

Now that you know what you can afford, you can begin your search for a new home.

Remember, the price the seller is asking for is not necessarily the price they will finally accept.  Your first offer can be lower than the asking price, although if there has been a lot of interest in the property, it could be wise to make an offer close to the asking price.  Remember, first time buyers are often preferred by sellers because your purchase isn’t reliant on selling another property.  This means the chain stops with you, and there is less of a chance of delays.  By discussing your mortgage requirements and affordability before you start viewing, you will be able to show the estate agents that you are in a position to proceed with the purchase.

Once your offer is accepted, it will be confirmed in writing.  Remember, the property is not officially yours until legally binding contracts are exchanged and all monies have been paid.  I can help you make a formal offer and instruct your solicitor.

A survey is a key part of obtaining a clear idea of the property’s condition and value.  There are different types of surveys, from a simple valuation indicating how much the property is worth through to a full structural survey. 

Depending on how long your property search takes, I will check that your original mortgage recommendation is still the right solution for you.  If there are no changes, I will then submit a full application to the mortgage lender with all supporting documentation, details of the property you wish to purchase and the solicitor you will be using.  The mortgage lender will review your application and carry out the necessary checks, also known as underwriting, to satisfy their lending criteria.  The lender will instruct a basic mortgage valuation to ensure that the property is suitable security for the mortgage loan.  Once all underwriting has been completed and a satisfactory survey received, the lender will be able to produce your mortgage offer.

Once your solicitor has carried out all of the necessary searches on your new property, solicitors from both sides will draw up formal contracts for you and the seller to sign.  This is to prepare for exchange of contracts, the final agreement between buyer and seller.  Your solicitor will ask for your deposit funds in order to exchange.  Make sure you have your buildings insurance in place for exchange of contracts (I will have already discussed this with you during your first  appointment).  These contracts are legally binding, so make sure that you are prepared to go ahead.

This is also known as completion.  On completion, your solicitor will transfer the funds released by the lender to the seller’s solicitor, and you will finally get the keys to your new home!

Your first mortgage payment should leave your account about a month after you move in.  This first payment may be more than your standard monthly repayment depending on when you complete and your payment date.

As your Mortgage Adviser I will be in contact with you, the estate agents and your solicitor throughout the process to ensure your purchase runs as smoothly as possible.

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE